‘Naira devaluation’s impact to be felt soon’

The Chairman, Corner stone Real Estate, Mr. Lanre Okupe, has said the impact of currency devaluation and decline in oil prices will be felt between the next four and six months.

He said since investors and other businesses would still have old stock, and that is why market prices are still the same.

However, once new orders are placed for products, price would change since the exchange rate has soared owing to the devaluation.

To this end, the economy, expectedly, would begin to experience a tougher period except measures are put in place to cushion the effect.

Going by the growth being recorded and experienced in the real sector in the last two years, experts are now upbeat that the real sector will benefit from the oil price crash as investors would look in its direction for succor.

Okupe, however, said the situation would create a problem for the economy, especially because the spending capacity of consumers will also be affected.

“If the devaluation and oil price crash continues, it will not be a problem of the real sector alone, but a general one for the economy. Besides, when prices go up, the challenge will be if there will be disposable income to buy products,” he said.

Principal Partner, Imole Ayo Real Estate, Mr. Kayode Oyedele, agreed that the devaluation of the naira had been made worse with the tumbling oil price.

According to him, people are reluctant to spend freely as they used to in the past because of the fear of the unknown.

But for him, the effect of the situation has set in. This is because properties that would have ordinarily been rented out are now delayed.

“It is a two-way dilemma in the real sector. While the property owner wants maximum profit from his asset, the buyer is weary of his finances at this period,” Oyedele said. He said even though the sector is being looked up to for good investment opportunities for investors, availability of funds will be the bane of such investment.